Manufacturing companies require careful inventory management to ensure they meet customer demand. The most common problem these companies face is inventory turnover, which impacts the company's total costs. The company's inventory overrun represents 9.3% of sales. Therefore, to streamline inventory turnover and optimize costs, a SLP model is proposed to maximize warehouse utilization, EOQ, find optimal order quantities, and define demand forecasts. To simulate the scenario with these tools, a FlexSim model was created, designing the current and proposed warehouse layout. Implementing the tools shows a decrease in inventory-related overruns of 4.7% of sales, saving S/. 275,260 annually.
Application of SLP, EOQ and Demand Management to Increase Turnover in a Manufacturing Company
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